EXETER, Pa. — Keystone Automotive Operations has announced financial results for the first quarter of fiscal year 2009 ended April 4.
Sales for the first quarter ended April 4 were $119.7 million, a decrease of $24.2 million, or 16.8 percent, compared to $143.9 million for the first quarter in the prior year. The decrease in sales was driven by a combination of factors, including less consumer spending on discretionary items due to the general economic recession, a year-over-year decline in truck and SUV sales and a reduction in credit availability in the marketplace.
Gross profit for the first quarter of fiscal 2009 was $39.6 million, a decrease of $6.8 million, or 14.8 percent, from the same period in the prior year. Gross margin was 33.1 percent, up from 32.3 percent in the first quarter of the prior fiscal year.
Operating loss for the first quarter of fiscal 2009 was $1.1 million, a decrease of $5.5 million compared to a $4.4 million operating income for the same period in the prior year. The decrease was attributable to the decline in sales, partially offset by the improvement in gross margin and by a decrease in operating expenses. The expense reductions came from efficiencies in sales, warehouse and delivery operations and from a decrease in fuel cost.
Net loss for the first quarter of fiscal 2009 was $5.4 million, versus a net loss of $2.8 million for the same period in the prior year. The higher net loss principally resulted from the previously mentioned $6.8 million decrease in gross profit, partially offset by a $1.5 million decrease in selling, general and administrative expenses, a $1.2 million decrease in interest expense and a $1.6 million increase in income tax benefit.
As of April 4, the company had a cash balance of $55.3 million and an additional $41 million of borrowing capacity under its revolving credit facility.
"We are never happy to post a year-over-year sales decrease, but given the challenging economic picture, we believe Keystone’s financial results for the first quarter suggest that we are significantly out-performing the broader aftermarket accessories and equipment industry," said Ed Orzetti, chief executive officer of Keystone Automotive Operations Inc. "We are very pleased with the increase we achieved in gross margin and remain focused on diligent category management, deeper sales penetration, enhanced customer service and a relentless commitment to operational improvements. Our efficient management of working capital and sturdy cash position, coupled with strong customer and vendor relationships, position us well to continue to win market share."
